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Stemming water claims: Q&A with Aviva VP Wayne Ross

Newer subdivisions showing resilience against flooding.

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That increase is also reflected in the amount of water-related claims, which now account for 40% of all homeowner claims, the insurer reports. Canadian Insurance Top Broker spoke to Wayne Ross, Aviva’s vice president of property claims, about industry partnerships and maximizing flood education for insurance consumers.

1. How else can the industry address rising water claims besides education–is there room for new, specialized products or discounts for flood preparation?

I think there is. The backwater valve can help with sewer back up. I’m not involved in ratings, but I think the underwriter would look more favourably on a property if the homeowner was prepared.

Most of these claims are preventable with appropriate maintenance. If you’re checking your roof regularly, [those installing a new roof] should put a water barrier beneath it, which prevents ice damming.

The infrastructure issue is huge. In the Maritimes, a lot of the cities are taking steps to improve the infrastructure–that’s something the municipalities are going to have to work through. But it’s the cost–that’s the difficulty. There’s a lot of flooding in the Greater Toronto Area (GTA), particularly close to the downtown core, where the infrastructure is so old. We’ve created a concrete jungle, there’s no place for the water to run off, and this compounds the problem.

2. Is there an opportunity for the industry to regroup with developers and builders on the flooding issue?

There’s a [renewed] focus on that now, and there has been for some time. The Insurance Bureau of Canada (IBC) makes recommendations on how [development] should go forward, and building infrastructure to suit growth. There is much more going on [on that front]. We’re not seeing the claims activity in the new subdivisions that we’re seeing in the older subdivisions, and that serves to illustrate what’s transpiring.

3. What should brokers advise homeowners about flooding?

[They should advise them to] put down flooring material that’s more durable in water–you’re better off with ceramics, which aren’t necessarily ruined by water. If you’ve got furniture or wood that will suck up water, you’ll have a lot of damage.

It’s wise to keep all valuables–like photographs–higher up [on shelves, etc.] Make sure when you build your rec room that you have sealed the perimeter properly. You will see signs of water seepage. It may be a trickle here and there, but water will take the path of least resistance. You have to make sure your perimeter is properly waterproofed–that’s preventative at the front end.

The broker should also validate whether they’ve had any other prior problems or sewer issues, and perhaps recommend a back up valve. It probably costs about $1000 to install, but it will relieve a lot of problems. They would need to know where the high areas of sewer backup are in the area–either they’ll get more limited coverage, or, they may not be able to get coverage at all.

4. Does any one Canadian city stand out for flooding problems?

When we had that thaw earlier this year, Montreal was bad, and Eastern Ontario was bad down through Kingston and Ottawa. It just depends on the precipitation–what we used to see with 1-in-100-year storms are becoming more prevalent in every part of Canada.

Damage is preventable, but it requires focus by the consumer. Unless you’ve suffered it, you’ll probably take it for granted.